# EUR-Lex - 52013PC0327 - EN

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# 52013PC0327

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down provisions for the management of expenditure relating to the food chain, animal health and animal welfare, and relating to plant health and plant reproductive material, amending Council Directives 98/56/EC, 2000/29/EC and 2008/90/EC, Regulations (EC) No 178/2002, (EC) No 882/2004 and (EC) No 396/2005, Directive 2009/128/EC and Regulation (EC) No 1107/2009 and repealing Council Decisions 66/399/EEC, 76/894/EEC and 2009/470/EC /* COM/2013/0327 final - 2013/0169 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

·
General context

On 29 June 2011, the European Commission
presented its proposal for a multiannual financial framework for 2014-2020[1] which was amended on 6 July
2012[2]. Taking into account the
conclusions of the European Council of 7/8 February 2013, the Commission is
proposing a maximum amount of EUR 1 891,936 million for
expenditure in relation to food and feed during the whole period 2014-2020. The
objective of this Regulation is to modernise the financial provisions for this
area.

The main current financial legal framework used
for funding these areas is Council Decision 2009/470/EC for veterinary
eradication programmes and veterinary emergency measures, Council Directive
2000/29/EC for plant health measures and Regulation (EC) No 882/2004 of the
European Parliament and of the Council for funding measures regarding official
controls. Further specific financial provisions exist in Regulation (EC) No 396/2005
on maximum residue levels of pesticides in or on food and feed of plant and
animal origin, in Regulation (EC) No 1107/2009 concerning the placing of plant
protection products on the market, in Directive 2009/128/EC establishing a
framework for Community action to achieve the sustainable use of pesticides as
well as in numerous other Council Directives related to animal and plant
health.

This piecemeal framework is not in line with
some provisions of the Financial Regulation and is quite complex. It has
evolved over time and it needs to be rationalised.

This is an opportunity to replace the current
financial provisions in multiple legal bases by one single, clear and modern financial
framework which optimises the implementation and the functioning of financial
management of expenditure in the field of food and feed. In particular, the
financial management structures will be simplified on the basis of clear
objectives and indicators. Funding rates will also be clearer and more
simplified.

This proposal is part of the 'Healthier Animals
and Plants for a Safer Food Chain Package' which includes proposals for:

–
the animal health policy, which aims to protect
and raise the health status and the condition of animal in the EU, in
particular food-producing animals, whilst permitting intra-EU trade and imports
of animals and animal products in accordance with the appropriate health
standards and international obligations;

–
the plant health regime, whose objective is to
protect EU agriculture and forestry by preventing the entry and spread of
non-native plant pests;

–
the regime for production and making available on
the market of plant reproductive material of agricultural, vegetable, forest,
fruit, vine and ornamental species, which ensures that EU criteria for health,
identity, and quality are met;

–
the rules which govern official controls and
other official activities performed to ensure the application of food law and
feed law, rules on animal health and welfare, plant health and plant
reproductive material, plant protection products and pesticides.

·
Focus of actions/Expenditure

The veterinary eradication programmes are
essential to progressively eliminate a number of listed animal diseases which
are endemic in certain areas of the Union, by means of a wide range of measures
including vaccination, testing of animals and compensation for slaughtering and
culling. EU funding to support these measures gives priority to diseases of
public health importance and those which have major economic impacts, due to
trade implications and income losses for farmers, for the wider livestock
industry, as well as adjacent sectors.

The EU plant health and plant reproductive
material regimes give priority to the protection of EU agriculture and forestry
by preventing the entry and spread of non-native pests of plants and to the
availability and use of healthy plant material at the beginning of the chain of
plant production.

Expenditure for official controls includes the
financing of the Better Training for Safer Food programme, which promotes a
harmonised approach to the operation of Union and national control systems; and
of the network of the EU Reference Laboratories, which provide scientific and
technical expertise in those areas where the effectiveness of official controls
depends on the quality, uniformity and reliability of the methods of analysis
or tests, and the results thereof, employed by official laboratories. It also
includes other actions intended to improve the effectiveness of official
controls performed by the Member States and the enforcement of the agri-food
chain acquis in general.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

·
Consultation of interested parties

Because these policies have been under review
for some time, they are individually supported by their own impact assessments,
and details of these policies have been extensively discussed with stakeholders
in various consultation fora.

·
Accelerated impact assessment

An impact
assessment was conducted between August and September 2012 by the
Directorate-General for Health and Consumers. It considered four options:

–
Option 1: no change. The current legal framework
will not be consistent with the Multiannual Financial Framework. Expenditure on
plant health could not be increased.

–
Option 2: bring existing legislation into one
legislative instrument. This will promote a simpler and more understandable
legislation, but will not allow the financial framework to be adapted.

–
Option 3 (a): establish a single coherent
financial programme, largely using existing financial provisions but with
improvements. The simplification of the system and the harmonisation of rates
will reduce the administrative burden on the Commission and on the Member
States. New financial management tools such as clear objectives and indicators
will use available resources more effectively.

–
Option 3 (b): introduction of aspects of Cost
and Responsibility Sharing Schemes (CRSS). This option envisages a
participatory approach when public authorities share with the private sector
the burden of losses incurred as well as the responsibilities of running the
system. The administrative burden will be expected to rise in the short term
and the system is expected to be difficult to manage.

–
Option 4: stop all EU actions. This option was
not considered appropriate because it will jeopardise the objectives of the
policy areas and will have a very negative impact on trade.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

The proposal is based on Articles 43(2) and
168(4)(b) of the Treaty on the Functioning of the European Union (TFEU).
Measures adopted under Article 43(2) should be necessary to pursue the
objectives of the common agricultural policy. Measures adopted under Article
168(4)(b) should have as their object a high level of human health protection.
This proposal undertakes to financially support EU and Member State actions aiming at ensuring a high level of health for humans, animals and plants along
the food chain and a high level of protection and information of food chain
consumers. The choice of Articles 43(2) and 168(4)(b) TFEU is thus justified both
by the objective and the content of the proposal. This proposal is to be
adopted in accordance with the ordinary legislative procedure and after
consulting the European Economic and Social Committee and the Committee of the
Regions.

4.           BUDGETARY IMPLICATION

On 29 June 2011, the European Commission
presented its proposal for a multiannual financial framework for 2014-2020[3] which was amended on 6 July
2012[4]. Taking into account the
conclusions of the European Council of 7/8 February 2013, the Commission is
proposing a maximum amount of EUR 1 891,936 million for
expenditure in relation to food and feed during the whole period 2014-2020. In
accordance with the Council Regulation (EC) No 58/2003 of 19 December 2002
laying down the statute for Executive Agencies to be entrusted with certain
tasks in the management of Community programmes, the Commission has entrusted
the Executive Agency for Health and Consumers with implementation tasks for the
management of the Food and Feed Programme since 2008. The Commission may use,
on the basis of a cost-benefit analysis, an existing executive agency for the
implementation of this Programme.

5.           SUMMARY OF CONTENTS OF THIS
REGULATION

This Regulation provides for the scope and
objectives for food and feed expenditure up to a maximum ceiling of EUR 1
891,936 million in current prices. The objectives are a high level of safety of
food and food production systems, a higher animal health status and animal
welfare, the detection and eradication of pests, to ensure an effective implementation
of official controls. These objectives are accompanied with their indicators.

This Regulation also sets eligible measures and
costs.

The funding rates for grants are rationalised.
A standard funding rate is set at 50% of the eligible costs. This rate can be
raised under certain conditions up to 75% and 100%. In order to avoid the
administrative burden of the management of micro-programmes, this Regulation
sets a minimal amount for grants of EUR 50 000.

This Regulation also provides for the access to
the Reserve for crises in the agricultural sector in certain circumstances.

Regarding plant health, in order to protect the
EU against pests linked inter alia to trade globalisation and climate
change, Union financial contribution will also cover survey programmes for the
presence of pests and phytosanitary support measures for the outermost
territories of Member States.

This Regulation provides for the possibility to
support Union reference laboratories and projects aimed at improving the
effectiveness and efficiency of official controls.

For the sake of clarity and transparency, this
Regulation sets the procedures of submission and evaluation of annual and
multiannual control programmes and the procedure for setting or updating the
list of animal diseases or plant pests eligible for co-funding.

The procedures for financing these areas are
simplified. In particular the number of decisions the Commission will have to
adopt will decrease significantly. For example the reimbursement decisions will
not be taken by the Commission any more.

2013/0169 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

laying down provisions for the management
of expenditure relating to the food chain, animal health and animal welfare,
and relating to plant health and plant reproductive material, amending Council
Directives 98/56/EC, 2000/29/EC and 2008/90/EC, Regulations (EC) No 178/2002,
(EC) No 882/2004 and (EC) No 396/2005, Directive 2009/128/EC and Regulation
(EC) No 1107/2009 and repealing Council Decisions 66/399/EEC, 76/894/EEC and
2009/470/EC

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 43(2) and 168(4)(b)
thereof,

Having regard to the proposal from the
European Commission[5],

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the
European Economic and Social Committee[6],

Having regard to the opinion of the
Committee of the Regions[7],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       Union legislation provides
for requirements regarding food and food safety and feed and feed safety, at
all stages of production, including rules aimed at guaranteeing fair practices in
trade and the provision of information to consumers. It also provides for requirements
regarding the prevention and control of transmissible diseases in animals and
zoonoses, and requirements regarding animal welfare, animal by-products, plant
health and plant reproductive material, the protection of plant varieties,
genetically modified organisms and the placing on the market and use of plant
protection products and the sustainable use of pesticides. Union legislation
also provides for official controls and other control activities aimed at
ensuring the effective implementation of and compliance with those requirements.

(2)       The general objective of
Union legislation in those areas is to contribute to a high level of health for
humans, animals and plants along the food chain, a high level of protection and
information of consumers and a high level of protection of the environment
while favouring competitiveness and creation of jobs.

(3)       The pursuit of that
general objective requires appropriate financial resources. It is therefore necessary
that the Union contributes to the funding of measures undertaken in the
different areas pertaining to that general objective. In addition, in order to
efficiently target the use of the expenditure, specific objectives should be
laid down and indicators should be set to assess the achievement of those
objectives.

(4)       Union financing for
expenditure relating to food and feed has in the past taken the form of grants,
procurement and payments to international organisations active in the field. It
is appropriate to continue financing in the same manner.

(5)       For reasons of budgetary
discipline, it is necessary to lay down in this Regulation the list of eligible
measures which may benefit from a Union contribution as well as the eligible
costs and applicable rates.

(6)       On 29 June 2011, the
European Commission presented its proposal for a multiannual financial
framework for 2014-2020[8]
which was amended on 6 July 2012[9].
Taking into account the conclusions of the European Council of 7/8 February
2013, the Commission is proposing a maximum amount of EUR 1 891,936 million
for expenditure in relation to food and feed during the whole period 2014-2020.

(7)       Furthermore, in its
proposal for a multiannual financial framework for 2014-2020, the Commission suggests
the creation of an emergency mechanism to react to crisis situations.
Consequently, in case of exceptional circumstances like emergency situations
related to animal and plant health, when the appropriations under budget heading
3 are insufficient but emergency measures are necessary, funds from the Reserve
for crises in the agricultural sector should be transferred in accordance with
the Interinstitutional Agreement of... between the European Parliament, the
Council and the Commission on cooperation in budgetary matters and on sound
financial management[10].

(8)       The legislation currently
in force provides that some of the eligible costs are reimbursed at fixed
rates, while for other costs no limitation is foreseen. In order to rationalise
and simplify the system, a fixed maximum rate for reimbursement should be set.
It is appropriate to set that rate at the usual level applied for grants. It is
also necessary to provide the possibility to raise that maximum rate in certain
circumstances.

(9)       Due to the importance of achieving
the objectives of this Regulation, it is appropriate to finance 100% of the
eligible costs for certain actions provided that the implementation of those
actions also implies incurring costs which are not eligible.

(10)     The Union has the
responsibility to ensure that funds are properly spent but also to take
measures to respond to the need to simplify its spending programmes in order to
reduce the administrative burden and the costs for beneficiaries of funds and
for all actors involved, in line with the Communication from the Commission to
the European Parliament, the Council, the European Economic and Social
Committee and the Committee of the Regions – Smart Regulation in the European
Union[11].
For cost effectiveness reasons, both at level of the Commission and of the
Member States, grants under a certain ceiling should not be granted anymore.

(11)     Union legislation requires
Member States to implement certain measures in the case of the occurrence and
development of certain animal diseases or zoonoses. Therefore, the Union should make a financial contribution for such emergency measures.

(12)     It is also necessary to
reduce, by appropriate eradication, control and monitoring measures, the number
of outbreaks of animal diseases and zoonoses which pose a risk to human and
animal health, as well as to prevent the occurrence of such outbreaks. National
programmes for the eradication, control and monitoring of those diseases and
zoonoses should therefore benefit from Union funding.

(13)     For organisational and
efficiency reasons in respect of the handling of funding in the animal and
plant health areas, it is appropriate to lay down rules on content, submission,
evaluation and approval of national programmes, including those implemented in
the outermost regions of the Union referred to in Article 349 of the Treaty on
the Functioning of the European Union ('TFEU'). For the same reasons, deadlines
for reporting and filing of payment requests should also be laid down.

(14)     Council Directive
2000/29/EC of 8 May 2000 on protective measures against the introduction into
the Community of organisms harmful to plants or plant products and against
their spread within the Community[12]
requires Member States to take certain emergency measures for the eradication
of organisms harmful to plants or plant products ('pests'). The Union should make a financial contribution towards the eradication of those pests. A Union
financial contribution should also be available under certain conditions for emergency
measures aimed at containing the pests which have the most severe impact on the
 Union and which cannot be eradicated in certain zones and for prevention
measures concerning those pests.

(15)     Emergency measures taken
against pests should be eligible for Union co-financing if those measures have
added value for the entire Union. For this reason, a Union financial
contribution should be made available for pests listed in Directive 2000/29/EC
as not known to occur in the Union. Where pests are known to occur in the
Union, only measures relating to the pests which have the most severe impacts
on the Union should be eligible for a Union financial contribution. Measures
relating to pests subject to Union emergency measures for their eradication
should also be eligible for a Union financial contribution.

(16)     It is necessary to timely
detect the presence of certain pests. Surveys carried out by the Member States
for such presence are essential to ensure the immediate eradication of
outbreaks of those pests. The surveys carried out by individual Member States
are essential to protect the territory of all other Member States. The Union should contribute to the financing of those surveys.

(17)     The outermost regions of
Member States experience difficulties caused by their remoteness and dependence
on a limited number of products. It is appropriate for the Union to grant a financial
contribution to Member States for programmes that they carry out for the
control of pests in those outermost regions in line with the objectives of
Regulation (EU) No 228/2013[13]
of the European Parliament and of the Council of 13 March 2013 laying down
specific measures for agriculture in the outermost regions of the Union and
repealing Council Regulation (EC) No 247/2006 .

(18)     Official controls carried
out by the Member States are an essential tool to verify and monitor that
relevant Union requirements are being implemented, complied with and enforced.
The effectiveness and efficiency of official control systems is vital for
maintaining a high level of safety for humans, animals and plants along the
food chain whilst ensuring a high level of protection of the environment. A Union
financial support should be made available for such control measures. In
particular, a financial contribution should be available to Union reference
laboratories in order to help them bear the costs arising from the
implementation of work programmes approved by the Commission. Moreover, since
the effectiveness of official controls also depends on the availability to the
control authorities of well trained staff possessing an appropriate knowledge
of Union legislation, the Union should be able to contribute to their training
and relevant exchange programmes organised by competent authorities.

(19)     The efficient management of
official controls depends on a rapid exchange of data and information related
to such controls. In addition, the proper and harmonised implementation of the
relevant rules depends on the setting of efficient systems involving Member State competent authorities. Therefore the establishment and operation of databases
and computerised information management systems for those purposes should also
be eligible for financial contribution.

(20)     The Union should make
funding available for technical, scientific, coordination and communication
activities necessary to ensure the correct implementation of Union legislation
and to ensure the adaptation of the legislation to scientific, technological
and societal developments. Funding should also be made available for projects
aimed at improving the effectiveness and efficiency of official controls.

(21)     Pursuant to Article 3 of
Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the
Council of 25 October 2012 on the financial rules applicable to the general
budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002[14], any proposal submitted to the
legislative authority containing derogations from provisions of that Regulation
has to clearly indicate such derogations and to state the specific reasons
justifying them. Therefore, given the specificities of some objectives covered
by this Regulation and considering that the respective competent authorities of
the Member States are best placed to implement the activities associated with
those objectives, those authorities should be considered as identified
beneficiaries for the purposes of Article 128(1) of Regulation (EU, Euratom) No
966/2012. It should therefore be possible to award grants to such authorities
without previous publication of calls for proposals.

(22)     By way of derogation from Article
86 and as an exception as referred to in Article 130 of Regulation (EU,
Euratom) No 966/2012, the costs for the emergency measures covered by Articles
7 and 17 of this Regulation should be eligible as from the date of notification
of the occurrence of a disease or the presence of a pest by the Member State to
the Commission due to the urgent and unforeseeable nature of those measures.
The corresponding budgetary commitments and the payment of eligible expenditure
should be made by the Commission, after assessment of the payment applications
submitted by the Member States, using, if appropriate and needed, the reserve
for crises in the agricultural sector.

(23)     It is of the utmost
importance that such emergency measures are implemented immediately. It would
therefore be counterproductive to exclude from funding those costs incurred
prior to the submission of the grant application, as this would encourage
Member States to focus their immediate efforts on the preparation of a grant
application, instead of on the implementation of emergency measures.

(24)     Given the extent of the
Union legislation in force concerning the implementation of eradication and
surveillance measures and the technical limitations as regards other expertise
available, the implementation of the measures covered by this Regulation needs
to be carried out for a major part by the Member States' competent authorities.
It is therefore necessary to cofinance the salary costs of the personnel of
national administrations in certain cases.

(25)     Programming allows
coordination and prioritisation and thus contributes to effective use of Union
financial resources. The Commission should therefore be empowered to adopt work
programmes for the implementation of certain measures provided for in this
Regulation.

(26)     To ensure responsible and
effective use of Union financial resources, the Commission should be allowed to
check that Union funding is effectively used for the implementation of eligible
measures either by on-the-spot checks or by documentary checks.

(27)     The financial interests of
the Union should be protected throughout the expenditure cycle, including the
prevention, detection and investigation of irregularities, the recovery of
funds lost, wrongly paid or incorrectly used.

(28)     In order to ensure uniform
conditions for the implementation of this Regulation, implementing powers
should be conferred on the Commission with regard to the establishment and
amendment of the lists of animal diseases and zoonoses which qualify for Union funding, as well as the establishment of work programmes. When amending the list of
animal diseases qualifying for emergency measures funding, the Commission
should take into account the animal diseases which must be notified in
accordance with Council Directive 82/894/EEC of 21 December 1982 on the
notification of animal diseases within the Community[15]. Those powers should be
exercised in accordance with Regulation (EU) No 182/2011 of the European
Parliament and of the Council of 16 February 2011 laying down the rules and
general principles concerning mechanisms for control by the Member States of
the Commission's exercise of implementing powers[16].

(29)     The advisory procedure
should be used for the adoption of the initial lists of animal diseases and
zoonoses which qualify for funding in the field of animal health, given that
those initial lists should merely contain, without any modifications, the
animal diseases and zoonoses which already qualify for such funding under Council
Decision 2009/470/EC of 25 May 2009 on expenditure in the veterinary field[17].

(30)     Union legislation should be
managed and implemented in such a way as to ensure that it delivers the
intended benefits, in the light of experience. It is therefore appropriate for
the Commission to evaluate the functioning and effectiveness of this Regulation
and to communicate the results to the other institutions.

(31)     Different committees assist
the Commission in the implementation of Union rules covered by this Regulation,
in particular the Committees established by Council Decision 66/399/EEC of 14
June 1966 setting up a Standing Committee on Seeds and Propagating Material for
Agriculture, Horticulture and Forestry[18],
Council Decision 76/894/EEC of 23 November 1976 establishing a Standing
Committee on Plant Health[19],
Council Directive 98/56/EC of 20 July 1998 on the marketing of propagating
material of ornamental plants[20],
Council Directive 2008/90/EC of 29 September 2008 on the marketing of fruit
plant propagating material and fruit plants intended for fruit production[21] and Regulation (EC) No
178/2002 of the European Parliament and of the Council of 28 January 2002
laying down the general principles and requirements of food law, establishing
the European Food Safety Authority and laying down procedures in matters of
food safety[22].
It is appropriate to streamline the Committee procedure in this area and to
charge the Committee established by Article 58 of Regulation (EC) 178/2002 with
the task of assisting the Commission in the exercise of its implementing powers
in respect of the expenditure incurred in the relevant areas and to adapt the name
of that Committee in order to reflect its extended tasks. Decisions 66/399/EEC
and 76/894/EEC should therefore be repealed and Directives 98/56/EC and
2008/90/EC and Regulation (EC) No 178/2002 should therefore be amended
accordingly.

(32)     This Regulation replaces
the provisions of Decision 2009/470/EC. In addition, this Regulation replaces
Articles 13c(5) and Articles 22 to 26 of Directive 2000/29/EC, Article 66 of
Regulation (EC) No 882/2004 of 29 April 2004 of the European Parliament and of
the Council on official controls performed to ensure the verification of
compliance with feed and food law, animal health and animal welfare rules[23], Articles 36 and 37 of
Regulation (EC) 396/2005 of the European Parliament and of the Council of 23
February 2005 on maximum residue levels of pesticides in or on food and feed of
plant and animal origin and amending Council Directive 91/414/EEC[24], Article 22 of Directive
2009/128/EC of the European Parliament and of the Council of 21 October 2009
establishing a framework for Community action to achieve the sustainable use of
pesticides[25]
and Article 76 of Regulation (EC) 1107/2009 of the European Parliament and of
the Council of 21 October 2009 concerning the placing of the plant protection
products on the market and repealing Council Directives 79/117/EEC and
91/414/EEC[26].
Directive 2000/29/EC, Regulations (EC) No 882/2004 and (EC) No 396/2005,
Directive 2009/128/EC and Regulation (EC) 1107/2009 should therefore be amended
accordingly,

HAVE ADOPTED THIS REGULATION:

TITLE I
COMMON PROVISIONS

CHAPTER I
SUBJECT MATTER, SCOPE AND OBJECTIVES

Article 1
Subject matter and scope

This Regulation
establishes provisions for the management of expenditure from the general
budget of the European Union in the fields covered by Union rules:

(a)
governing food and food safety, at any stage of
production, processing, distribution and disposal of food, including rules
aimed at guaranteeing fair practices in trade and protecting consumer interests
and information, and the manufacture and use of materials and articles intended
to come into contact with food;

(b)
governing feed and feed safety, at all stages of
production, processing, distribution and disposal of feed and the use of feed,
including rules aimed at guaranteeing fair practices in trade and protecting
consumer interests and information;

(c)
laying down animal health requirements;

(d)
laying down welfare requirements for animals;

(e)
on protective measures against organisms harmful
to plants or plant products as defined in Directive 2000/29/EC (hereinafter:
'pests');

(f)
on the production, with a view to placing on the
market, and placing on the market of plant reproductive material;

(g)
laying down the requirements for placing on the
market of plant protection products and the sustainable use of pesticides;

(h)
aiming at preventing and minimising risks to
public and animal health arising from animal by-products and derived products;

(i)
governing the deliberate release into the
environment of genetically modified organisms;

(j)
on protection of intellectual property right in
relation to plant varieties and conservation and exchange of plant genetic
resources.

Article 2
Objectives

1.           The expenditure referred
to in Article 1 shall aim at attaining:

(a)     the general objective of contributing
to a high level of health for humans, animals and plants along the food chain
and in related areas and a high level of protection for consumers and the
environment while enabling the Union food and feed industry to operate in an
environment favouring competitiveness and the creation of jobs;

(b)     the
following specific objectives:

(i)      to
contribute to a high level of safety of food and food production systems and of
other products which may affect the safety of food, while improving the
sustainability of food production;

(ii)      to contribute to a higher animal
health status in the Union and to support the improvement of the welfare of
animals;

(iii)     to contribute to timely detection of
pests and their eradication where those pests have entered into the Union;

(iv)     to contribute to improve the
effectiveness, efficiency and reliability of official controls and other
activities carried out in view of the effective implementation of and
compliance with the Union rules referred to in Article 1.

2.           In order to measure the
attainment of the specific objectives referred to in paragraph 1(b) the
following indicators shall be used:

(a)     for the specific objective in
paragraph 1(b)(i), the reduction of the number of cases of diseases in humans
in the Union and which are linked to food safety or zoonoses;

(b)     for the specific objective in
paragraph 1(b)(ii):

(i)      the increase of the number of Member States or regions thereof which are free from animal diseases for which a financial
contribution is granted;

(ii)      an overall reduction of disease parameters
such as incidence, prevalence and number of outbreaks;

(c)     for the specific objective in
paragraph 1(b)(iii):

(i)      the coverage of the Union territory
by surveys for pests, in particular for pests not known to occur in the Union
territory and pests considered to be most dangerous for the Union territory;

(ii)      the time and success rate for the
eradication of those pests;

(d)     for the specific objective in
paragraph 1(b)(iv), a favourable trend of the outcome of controls in particular
areas of concern carried out and reported by Commission experts in the Member
States.

CHAPTER II
FORMS OF FINANCING AND GENERAL FINANCIAL PROVISIONS

Article 3
Forms of financing

1.           Union financing for the
expenditure referred to in Article 1 shall be implemented in accordance with Regulation
(EU, Euratom) No 966/2012.

2.           When grants are awarded to
the competent authorities of the Member States, they shall be considered as
identified beneficiaries within the meaning of Article 128(1) of Regulation (EU,
Euratom) No 966/2012. Such grants may be awarded without a call for proposals.

3.           The Union financial
contribution for the measures referred to in this Regulation may also take the
form of voluntary payments to international organisations active in the areas
covered by the rules referred to in Article 1, of which the Union is a member
or in the work of which it participates.

Article 4
Budget

1.           Without prejudice to Article 5,
the ceiling for the expenditure referred to in Article 1 for the period from 1
January 2014 to 31 December 2020 shall be a maximum amount of EUR 1 891,936
million in current prices.

2.           The ceiling referred to in
paragraph 1 may also cover expenses pertaining to preparatory, monitoring,
control, audit and evaluation activities which are required for the management
of the expenditure referred to in Article 1 and the achievement of their
objectives, in particular studies, meetings of experts, expenses linked to IT
networks focusing on information processing and exchange, as well as all other
technical and administrative assistance expenses incurred by the Commission for
the management of that expenditure.

3.           The ceiling may also cover
the technical and administrative assistance expenses necessary to ensure the
transition between actions adopted before and after the entry into force of
this Regulation. If necessary, appropriation may be entered in the budget
beyond 2020 to cover similar expenses, in order to enable the management of
actions not yet completed by 31 December 2020.

Article 5
Use of the reserve for crises in the agricultural sector

The Union contribution to measures for
emergency situations covered by Section 1 of Chapter I of Title II and Section
1 of Chapter II of Title II may also be financed in accordance with point (e)
of Article 4(2) of Regulation (EU) No XXX/201X of the European Parliament and
the Council on the financing, management and monitoring of the common
agricultural policy.

Article 6
Maximum rates and minimum amount of grants

1.           Where
the Union financial contribution takes the form of a grant, it shall not exceed
50% of the eligible costs.

2.           The
maximum rate referred to in paragraph 1 may be increased to 75% of the eligible
costs for:

(a)     cross-border activities implemented
together by two or more Member States in order to control or eradicate pests or
animal diseases;

(b)     Member States whose gross national
income per inhabitant based on the latest Eurostat data is less than 90% of the
Union average;

3.           The
maximum rate referred to in paragraph 1 may be increased to 100% of the eligible
costs where the activities benefitting from Union contribution:

(a)     concern
the control of serious health risks for the Union;

(b)     are specific tasks of particular
importance for the Union, as explicitely acknowledged by the Commission in the
work programme adopted in accordance with Article 35(1); or

(c)     are implemented in third countries.

4.           No
grant of less than EUR 50 000 shall be awarded.

TITLE II
FINANCIAL PROVISIONS

CHAPTER I
ANIMAL HEALTH

Section 1
Emergency Measures

Article 7
Eligible measures

1.           Grants
may be awarded to Member States up to the maximum rates set in
Article 6(1), (2) and (3) for the measures taken in the event of the
confirmation of the occurrence of one of the animal diseases listed pursuant to
Article 8, provided that the measures have been applied
immediately and the applicable provisions laid down in the relevant Union
legislation have been complied with.

2.           Grants may be awarded to
Member States where, on the confirmation of the occurrence of one of the animal
diseases listed pursuant to Article 8, two or more Member States collaborate
closely to control the epidemic.

3.           Grants may be awarded to
Member States, third countries and international organisations for protection
measures taken in the case of a direct threat to the health status of the Union
as a result of the occurrence or development, in the territory of a third
country or a Member State, of one of the animal diseases and zoonoses listed
pursuant to Articles 8 or 11.

4.           Grants may be awarded to
Member States where the Commission decides, at the request of a Member State, that they must establish stocks of biological products intended for the
control of the animal diseases and zoonoses listed pursuant to Articles 8 or
11.

5.           A Union financial
contribution may be awarded for the establishment of stocks of biological
products or the acquisition of vaccine doses if the occurrence or the
development in a third country or Member State of one of the animal diseases and
zoonoses listed pursuant to Articles 8 or 11 may constitute a threat to the
Union.

Article 8
List of animal diseases

1.           The Commission shall, by
means of an implementing act, establish the list of animal diseases which
qualify for funding under Article 7. That list shall contain the animal
diseases referred to in Articles 3(1), 4(1), 6(2) and 14(1) of Decision
2009/470/EC. That implementing act shall be adopted in accordance with the
advisory procedure referred to in Article 39(2) of this Regulation.

2.           The Commission may, by
means of implementing acts, amend the list of animal diseases established
pursuant to paragraph 1, taking into account the animal diseases which must be
notified in accordance with Directive 82/894/EEC and the diseases which are
likely to constitute a new threat for the Union due to their significant impact
on:

(a)
human health;

(b)
animal health or animal welfare; or

(c)
the agricultural or aquaculture production or
related sectors of the economy.

Those implementing acts shall be adopted in
accordance with the examination procedure referred to in Article 39(3) of this
Regulation.

Article 9
Eligible costs

1.           The following costs
incurred by the Member States in carrying out the measures referred to in Article
7(1) may be eligible for funding, under that paragraph:

(a)
costs of compensation to owners for the value of
their animals slaughtered or culled, within the limit of the market value of
the animals immediately before they were slaughtered or culled;

(b)
costs of compensation to owners for the value of
their destroyed products of animal origin, within the limit of the market value
of those products immediately before their destruction;

(c)
costs of cleaning, desinsectisation and
disinfection of holdings and equipment;

(d)
costs for the destruction of the contaminated
feeding stuffs and, where it can not be disinfected, contaminated equipment;

(e)
cost of purchase and administration of vaccines
if those are decided or authorised by the Commission;

(f)
costs of transport of carcasses to processing
plants where applicable;

(g)
in exceptional and duly justified cases, any
other costs essential for the eradication of the disease as provided for in the
financing decision referred to in Article 35(3) of this Regulation.

2.           As an exception, as referred to in Article 130(1) of
Regulation (EU, Euratom) No 966/2012, costs shall be eligible from the date of
notification of the occurrence of the disease by the Member States to the
Commission.

After assessment of the payment
applications submitted by the Member States, the Commission shall make the
corresponding budgetary commitments and the payment of eligible expenditure.

Section 2
Programmes for the eradication, control and surveillance of animal diseases and
zoonoses

Article 10
Eligible programmes

Grants may be awarded to Member States'
annual or multiannual national programmes for the eradication, control and surveillance
of the animal diseases and zoonoses listed pursuant to Article 11 (hereinafter
"national programmes").

Article 11
List of animal diseases and zoonoses

1.           The Commission shall, by
means of an implementing act, establish the list of animal diseases and
zoonoses which qualify for grants under Article 10. That list shall contain the
animal diseases and zoonoses listed in Annex I to Decision 2009/470/EC. That
implementing act shall be adopted in accordance with the advisory procedure
referred to in Article 39(2) of this Regulation.

2.           The Commission may, by
means of implementing acts, amend the list established pursuant to paragraph 1,
taking into account

(a)
the situation of animal diseases that have a
significant impact on livestock production or trade;

(b)
the development of zoonoses which pose a threat
to humans; or

(c)
new scientific or epidemiological development.

Those implementing acts shall be adopted in
accordance with the examination procedure referred to in Article 39(3) of
this Regulation.

Article 12
Eligible costs

The following costs incurred by the Member
States in implementing the national programmes may be eligible for grants under
Article 10:

(a)
costs of sampling animals;

(b)
costs of tests, provided that they are limited
to:

(i)      costs of test kits, reagents, and
consumables which are identifiable and specially used for carrying out those tests;

(ii)     costs of personnel, regardless its
status, directly involved in carrying out the tests;

(c)
costs of compensation to owners for the value of
their animals slaughtered or culled in the framework of the national programme,
within the limit of the market value of the animals immediately before they
were slaughtered or culled;

(d)
costs of compensation to owners for the value of
their destroyed products of animal origin, within the limit of the market value
of those products immediately before their destruction;

(e)
costs of purchase and storage of vaccine doses
or vaccine and baits for animals used for the programmes;

(f)
costs of inoculation of vaccine doses to
domestic animals;

(g)
costs of distribution of vaccines and baits for
wild animals;

(h)
costs of cleaning, disinfection,
desinsectisation of the holding and equipment and based on the epidemiology and
characteristics of the pathogen;

(i)
in exceptional and duly justified cases, the
costs incurred in carrying out other necessary measures than those referred to
in points (a) to (h), provided that such measures are set out in the grant
decision referred to in Article 14(2).

For the purposes of point (c) of the first
subparagraph, the salvage value of the animals, if any, shall be deducted from
the compensation.

For the purposes of point (d) of the first
subparagraph, the salvage value of heat-treated non-incubated eggs shall be
deducted from the compensation.

Article 13
Content and submission of the national programmes

1.           Each
year, by 31 May, Member States shall submit to the Commission the national
programmes starting in the following year for which they apply for a grant.

National programmes submitted after 31 May shall
not be eligible for financing the following year.

2.           The
national programmes shall contain at least the following:

(a)     a description of the epidemiological
situation of the animal disease or zoonose before the date of the beginning of
the programme;

(b)     a description and demarcation of the
geographical and administrative areas in which the programme is to be applied;

(c)     the duration of the programme;

(d)     the measures to be implemented;

(e)     the estimated budget;

(f)      the targets to be attained by the
completion date of the programme and its anticipated benefits;

(g)     appropriate indicators to measure the
achievement of the targets of the programme.

In each multiannual national programme, the
information referred to in points (a) to (g) of the first subparagraph shall be
provided for each year covered by the programme.

3.           If
the occurrence or the development of one of the animal diseases or zoonoses
listed pursuant to Article 11 is likely to constitute a threat to the health
status of the Union and in order to protect the Union from the introduction of
one of those diseases or zoonoses, Member States may include in their national
programmes measures to be implemented in territories of neighbouring third
countries in cooperation with the authorities of those countries.

Article 14
Evaluation and approval of the national programmes

1.           The national programmes shall be
evaluated taking into account the priorities and criteria set out in the annual
or multiannual work programmes referred to in Article 35(1) and, where
appropriate, those outlined in the annual or multiannual guidelines referred to
in paragraph 5 of this Article.

2.           Annual national programmes and
associated funding shall be approved by 31 January each year by means of a
grant decision in relation to the measures implemented and the costs incurred
from 1 January to 31 December of that year. Following submission of the
intermediate reports as referred to in Article 15, the Commission may amend
such decisions if necessary in relation to the whole eligibility period.

3.           Multiannual national programmes
and associated funding shall be approved by 31 January of the first year
of implementation by means of a grant decision in relation to the measures
implemented and the costs incurred from 1 January of the first year of
implementation until the end of the implementation period.

4.           In the case of approval of
multiannual national programmes in accordance with paragraph 3, budgetary
commitments may be divided into annual instalments. Where budgetary commitments
are divided into annual instalments, the Commission shall commit the annual
instalments taking into account the progress of the programmes, the estimated
needs and the budget available.

5.           The Commission may adopt annual
or multiannual guidelines containing the veterinary priorities and criteria to
be used in evaluating the national programmes.

Article 15
Reporting

For each approved annual or multiannual national
programme, Member States shall submit to the Commission, by 31 March each year,
an annual detailed technical and financial report covering the previous year
including the results achieved, measured on the basis of the indicators
referred to in Articles 13(2)(g) and a detailed account of eligible costs
incurred.

In addition, for each approved annual national
programme, Member States shall submit to the Commission, by 31 July each year,
intermediate technical and financial reports.

Article 16
Payments

The payment request for a given year in
respect of a national programme shall be submitted by the Member State to the Commission by 31 March of the following year.

The Commission shall pay the Union financial
contribution for the eligible costs following appropriate verification of the
reports referred to in Article 15.

CHAPTER II
PLANT HEALTH

Section 1
Emergency measures

Article 17
Eligible measures

1.           Grants may be awarded to Member
States up to the maximum rates set in Article 6(1), (2) and (3) for the
following measures against pests, subject to the conditions laid down in
Article 18:

(a)     measures to eradicate a pest from an
infested area, taken by the competent authorities pursuant to Articles 16(1)
and 16(2) of Directive 2000/29/EC or pursuant to the Union measures adopted in
accordance with Article 16(3) of that Directive;

(b)     measures to contain a pest, against
which Union containment measures have been adopted pursuant to Article 16(3) of
Directive 2000/29/EC, in an infested area from which that pest cannot be
eradicated, where those measures are essential to protect the Union against
further spread of that pest. Those measures shall exclusively concern the
eradication of that pest from the buffer zone in case its presence is detected
in that buffer zone;

(c)     additional protective measures taken
against the spread of a pest, against which Union measures have been adopted
pursuant to Article 16(3) of Directive 2000/29/EC, other than the eradication measures referred to in point (a) and the
containment measures referred to in point (b), where those measures are
essential to protect the Union against further spread of that pest.

2.           Grants referred to in paragraph 1
may also be awarded to a Member State in whose territory the pests referred to
in paragraph 1 are not present, where measures have been taken against the
entry of those pests into the territory of that Member State because of their
presence in a neighbouring Member State or third country immediately adjacent
to its border.

Article 18
Conditions

The measures referred to in Article 17 may
qualify for grants provided that they have been applied immediately and the
applicable provisions laid down in the relevant Union legislation have been
complied with, and provided that at least one of the following conditions is
fulfilled:

(a)
they concern pests listed in Section I of Part A
of Annex I and Section I of Part A of Annex II to Directive 2000/29/EC;

(b)
they are covered by a measure adopted by the
Commission pursuant to Article 16(3) of Directive 2000/29/EC.

For measures fulfilling the condition laid
down in point (b) of the first paragraph, the grant shall not cover costs
incurred after the expiry of the measure adopted by the Commission pursuant to
Article 16(3) of Directive 2000/29/EC.

Article 19
Eligible costs

1.           The following costs incurred by
Member States in carrying out the measures referred to in Article 17 may be
eligible for grants under that Article:

(a)
costs of personnel, regardless its status,
directly involved in the measures, as well as costs of renting of equipment,
consumables and any other necessary materials, treatment products, and
laboratory tests;

(b)
costs of service contracts with third parties to
execute part of the measures;

(c)
costs of compensation to the operators concerned
for the destruction and subsequent removal of plants, plant products and other
objects, and the cleaning and disinfection of premises, land, water, soil,
growing media, facilities, machinery and equipment;

(d)
in exceptional and duly justified cases, the
costs incurred in carrying out other necessary measures than those referred to
in points (a) to (c), provided that such measures are set out in the financing decision
referred to in Article 35(3).

2.           As an exception, as referred to in
Article 130(1) of Regulation (EU, Euratom) No 966/2012, costs shall be eligible
from the date of notification of the presence of the pest by the Member States
to the Commission.

After assessment of the payment applications
submitted by the Member States, the Commission shall make the corresponding
budgetary commitments and the payment of eligible expenditure.

Section 2
Survey programmes concerning the presence of pests

Article 20
Eligible survey programmes

Grants may be awarded to Member States for
annual and multiannual survey programmes that they carry out concerning the
presence of pests (hereinafter: 'survey programmes'), provided that those
survey programmes comply with at least one of the following conditions:

(a)
they concern pests listed in Section I of Part A
of Annex I and Section I of Part A of Annex II to Directive 2000/29/EC;

(b)
they are covered by a measure adopted by the
Commission pursuant to Article 16(3) of Directive 2000/29/EC.

For the pests referred to in point (a) of the
first paragraph, the survey programmes shall be based on an assessment of the
risk of the entry, establishment and spread of those pests in the territory of
the Member State concerned and shall as a minimum target the pests that pose
the main risks and the main plant species that are exposed to those risks.

For measures fulfilling the condition laid
down in point (b) of the first paragraph, the grant shall not cover costs
incurred after the expiry of the measure adopted by the Commission pursuant to
Article 16(3) of Directive 2000/29/EC.

Article 21
Eligible costs

The following costs incurred by the Member
States in implementing the survey programmes referred to in Article 20 may be
eligible for grants under that Article:

(a)
costs for sampling;

(b)
costs of tests, provided that they are limited
to:

(i)      costs of test kits, reagents and consumables
which are identifiable and specially used for carrying out the tests;

(ii)     costs of personnel, regardless its
status, directly involved in collecting the samples and carrying out the tests;

(c)
in exceptional and duly justified cases, costs
incurred in carrying out other necessary measures than those referred to in points
(a) and (b), provided that such measures are set out in the grant decision
referred to in Article 23(2).

Article 22
Content and submission of the survey programmes

1.           Each year by 31 May Member States
shall submit to the Commission the survey programmes starting in the following
year for which they apply for a grant.

Survey programmes submitted after 31 May shall
not be eligible for financing the following year.

2.           The survey programmes shall
contain at least the following:

(a)
the pests included in the
programme;

(b)
a description and demarcation of the
geographical and administrative areas in which the programme is to be applied
and a description of the status of those areas as regards
the presence of the pests concerned;

(c)
the duration of the programme;

(d)
the number of visual examinations, samples and
tests scheduled for the pests and plants, plants products and other objects concerned;

(e)
the estimated budget;

(f)
the targets to be attained by the completion date
of the programme and its anticipated benefits;

(g)
appropriate indicators to measure the
achievement of the targets of the programme.

In each multiannual survey programme, the
information referred to in points (a) to (g) of the first subparagraph shall be
provided for each year covered by the programme.

Article 23
Evaluation and approval of the survey programmes

1.           The survey programmes shall be
evaluated taking into account the priorities and criteria set out in the annual
or multiannual work programmes referred to in Article 35(1) and, where
appropriate, those outlined in the annual or multiannual guidelines referred to
in paragraph 5 of this Article.

2.           Annual survey programmes and
associated funding shall be approved by 31 January each year by means of a
grant decision in relation to the measures implemented and the costs incurred
from 1 January to 31 December of that year. Following submission of the
intermediate reports as referred to in Article 15, the Commission may amend
such decisions if necessary in relation to the whole eligibility period.

3.           Multiannual survey programmes and
associated funding shall be approved by 31 January of the first year of
implementation by means of a grant decision in relation to the measures
implemented and the costs incurred from 1 January of the first year of
implementation until the end of the implementation period.

4.           In the case of approval of
multiannual survey programmes in accordance with paragraph 3, budgetary
commitments may be divided into annual instalments. Where budgetary commitments
are divided into annual instalments, the Commission shall commit the annual
instalments taking into account the progress of the programmes, the estimated
needs and the budget available.

5.           The Commission may adopt annual or
multiannual guidelines containing the phytosanitary priorities, including in
particular pests not known to occur in the Union territory and pests considered
to be most dangerous for the Union territory, and criteria to be used in
evaluating the survey programmes.

Article 24
Reporting and payments

Articles 15 and 16 shall apply mutatis
mutandis to survey programmes.

Section 3
Programmes concerning the control of pests in outermost regions of the Union

Article 25
Eligible measures and costs

1.           Grants may be awarded to Member
States for programmes that they carry out for the control of pests in the
outermost regions of the Union as enumerated in Article 349 of the Treaty on
the Functioning of the European Union in line with the objectives set out in
Article 2 of Regulation (EU) No 228/2013 (hereinafter: 'programmes for the
outermost regions'). Those grants shall concern activities necessary to ensure
the correct implementation in those regions of the rules, in force in those
regions, on the control of pests.

2.           The following costs incurred by
Member States for programmes for the outermost regions may be eligible for a Union
financial contribution:

(a)
 costs of personnel,
regardless of its status, directly involved in the implementation of the
measures, as well as costs of renting of equipment, consumables, treatment
products;

(b)
costs of service contracts with third parties to
execute part of the measures;

(c)
costs for sampling;

(d)
costs of tests, provided that they are limited
to:

(i)      costs of test kits, reagents and
consumables which are identifiable and specially used for carrying out the
tests;

(ii)      costs of personnel, regardless its
status, directly involved in collecting the samples and carrying out the tests.

Article 26
Content and submission of the programmes for the outermost regions

1.           Each year by 31 May Member States
shall submit to the Commission the programmes for the outermost regions
starting in the following year for which they apply for a grant.

Programmes for the outermost regions submitted
after 31 May shall not be eligible for financing the following year.

2.           The programmes for the outermost
regions shall contain at least the following:

(a)
the pests included in the
programme;

(b)
a description and demarcation of the
geographical and administrative areas in which the programme is to be applied
and a description of the status of those areas as regards
the presence of the pests concerned;

(c)
a technical analysis of the regional phytosanitary
situation;

(d)
the duration of the programme;

(e)
the activities included in the programme and, where
relevant, the number of visual examinations, samples and tests scheduled for
the pests and plants, plants products and other objects concerned;

(f)
the estimated budget;

(g)
the targets to be attained by the completion date
of the programme and its anticipated benefits;

(h)
appropriate indicators to measure the
achievement of the targets of the programme.

In each multiannual programme for the outermost
regions, the information referred to in points (a) to (h) of the first subparagraph
shall be provided for each year covered by the programme.

Article 27
Evaluation and approval of the programmes for the outermost regions

1.           The programmes for the outermost
regions shall be evaluated taking into account the priorities and criteria set
out in the annual or multiannual work programmes referred to in Article 35(1).

2.           Annual programmes for the
outermost regions and associated funding shall be approved by 31 January each
year by means of a grant decision in relation to the measures implemented and
the costs incurred from 1 January to 31 December of that year. Following
submission of the intermediate reports as referred to in Article 15, the
Commission may amend such decisions if necessary in relation to the whole
eligibility period.

3.           Multiannual programmes for the
outermost regions and associated funding shall be approved by 31 January
of the first year of implementation by means of a grant decision in relation to
the measures implemented and the costs incurred from 1 January of the first
year of implementation until the end of the implementation period.

4.           In the case of approval of
multiannual programmes for the outermost regions in accordance with paragraph 3,
budgetary commitments may be divided into annual instalments. Where budgetary
commitments are divided into annual instalments, the Commission shall commit
the annual instalments taking into account the progress of the programmes, the
estimated needs and the budget available.

Article 28
Reporting and payments

Articles 15 and 16 shall apply mutatis
mutandis to programmes for the outermost regions.

CHAPTER III
Financial Support to OFFICIAL CONTROLS AND OTHER
ACTIVITIES

Article 29
European Union reference laboratories

1.           Grants
may be awarded to the European Union reference laboratories referred to in
Article 32 of Regulation (EC) No 882/2004 for the costs they incur to implement
the work programmes approved by the Commission.

2.           The
following costs may be eligible for grants under paragraph 1:

(a)
costs of personnel, regardless its status, directly
involved in activities of the laboratories which are carried out in their
capacity of Union reference laboratory;

(b)
costs of capital equipment;

(c)
cost of consumables;

(d)
costs of shipment of samples, missions,
meetings, training activities.

Article 30
Training

1.           The Union may finance the
training of the staff of the competent authorities responsible for official
controls, as referred to in Article 51 of Regulation (EC) No 882/2004, in order
to develop a harmonised approach to official controls and other official
activities to ensure a high level of protection of human, animal and plant
health protection.

2.           The Commission shall develop
training programmes identifying the priorities for intervention, based on the
identified risks for public health, animal health and welfare and plant health.

3.           In order to be eligible for Union
financing as referred to in paragraph 1, the competent authorities shall ensure
that the knowledge acquired through the training activities referred to in that
paragraph is disseminated as necessary and appropriately used in the national
training programmes.

4.           The following costs may be
eligible for the financial contribution referred to in paragraph 1:

(a)
cost of the organisation of the training or
exchange activities;

(b)
costs of travel and accommodation of the personnel
of the competent authorities taking part in the training.

Article 31
Experts from the Member States

A Union financial contribution may be
granted for the travel and subsistence expenses incurred by Member States'
experts as a result of the Commission appointing them to assist its experts as
provided for in Articles 45(1) and 46(1) of Regulation (EC) No 882/2004.

Article 32
Coordinated control plans and data collection

1.           Grants may be awarded to Member
States for the costs incurred for the implementation of the coordinated control
plans referred to in Article 53 of Regulation (EC) No 882/2004 and for data
collection.

2.           The following costs may be
eligible:

(a)
costs of laboratory tests,

(b)
cost of equipment necessary to perform the
official control and data collection tasks.

CHAPTER IV
OTHER MEASURES

Article 33
Information systems

1.           The Union shall finance the
establishment and operation of data bases and computerised information
management systems necessary for the effective and efficient implementation of
the rules referred to in Article 1 and managed by the Commission.

2.           A Union financial contribution
may be granted for the establishment and management of data bases and
computerised information management systems of third parties, including
international organisations, provided that such tools:

(a)
have a demonstrated added value for the Union as
a whole and are available across the Union to all interested users; and

(b)
are necessary for the effective and efficient
implementation of the rules referred to in Article 1.

Article 34
Implementation and adaptation of the rules

1.           The Union may finance technical
and scientific work, including studies and coordination activities, necessary
to ensure the correct implementation of the rules referred to in Article 1 and
the adaptation of those rules to scientific, technological and societal
developments.

A Union financial contribution may also be
granted to the Member States or international organisations operating in the
areas referred to in Article 1 to undertake activities in support of the
development and implementation of the rules referred to in Article 1.

2.           Grants may be awarded to projects
organised by one or more Member States with the aim of improving, through the
use of innovative techniques and protocols, the efficient performance of
official controls.

3.           A Union financial contribution
may also be granted to support information and awareness raising initiatives
aimed at ensuring improved, compliant and sustainable behaviour in the
implementation of the rules referred to in Article 1.

TITLE III
PROGRAMMING, IMPLEMENTATION AND CONTROL

Article 35
Work programmes

1.           The Commission shall, by means of
implementing acts, adopt common or separate annual or multiannual work
programmes for the implementation of the measures referred to in Title II,
except for Section 1 of Chapter I and Section 1 of Chapter II. Those
implementing acts shall be adopted in accordance with the examination procedure
referred to in Article 39(3).

2.           The work programmes referred to
in paragraph 1 shall set out the objectives pursued, the expected results, the
method of implementaton and their total amount. They shall also contain a
description of the measures to be financed, an indication of the amount
allocated to each measure and an indicative implementation timetable. They
shall include for grants the priorities, the essential evaluation criteria, the
funding rate.

3.           For the implementation of the
measures referred to in Section 1 of Chapter I of Title II and Section 1 of
Chapter II of Title II, or where it is necessary to respond to unforeseeable
developments, the Commission shall adopt ad hoc financing decisions in
accordance with Article 84(2) of Regulation (EU, Euratom) No 966/2012.

Article 36
On-the-spot checks by the Commission

The Commission may organise on-the-spot
checks in Member States and at the premises of the beneficiaries with a view to
verifying in particular:

(a)
the effective implementation of the measures
benefitting from the Union financial contribution;

(b)
the compliance of administrative practices with
Union rules;

(c)
the existence of the requisite supporting
documents and their correlation with the measures benefitting from a Union
contribution.

Article 37
Access to information

Member States and beneficiaries shall make
available to the Commission all information necessary for verifying implementation
of the measures and shall take all appropriate measures to facilitate the
checks which the Commission deems appropriate in connection with the management
of Union financing, including on-the-spot checks.

Article 38
Protection of the Union's financial interests

1.           The Commission shall take
appropriate measures ensuring that, when measures financed under this
Regulation are implemented, the financial interests of the Union are protected
by the application of preventive measures against fraud, corruption and any
other illegal activities, by effective checks and, if irregularities are
detected, by the recovery of the amounts wrongly paid and, where appropriate,
by effective, proportionate and deterrent penalties.

2.           The Commission or its
representatives and the Court of Auditors shall have the power of audit, on the
basis of documents and on-the-spot, over all grant beneficiaries, implementing
bodies, contractors and subcontractors who have received Union funds under this
Regulation.

The European Anti-Fraud Office (OLAF) shall be
authorised to carry out on-the-spot checks and inspections on economic
operators concerned directly or indirectly by such funding in accordance with
the procedures laid down in Council Regulation (Euratom, EC) No 2185/96[27] with a view to establishing
that there has been fraud, corruption or any other illegal activity affecting
the financial interests of the Union in connection with a grant agreement or
decision or a contract concerning Union funding.

Without prejudice to the first and the second subparagraphs,
cooperation agreements with third countries and international organisations,
grant agreements, grant decisions and contracts resulting from the
implementation of this Regulation shall expressly entitle the Commission, the
Court of Auditors and OLAF to conduct such audits, on-the-spot checks and
inspections.

TITLE IV
GENERAL AND FINAL PROVISIONS

Article 39
Committee procedure

1.           The Commission shall be assisted by
the Standing Committee on Plants, Animals, Food and Feed established by Article
58(1) of Regulation (EC) No 178/2002. That Committee shall be a committee
within the meaning of Regulation (EU) No 182/2011.

2.           Where reference is made to this
paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

Where the opinion of the committee is to be
obtained by written procedure, that procedure shall be terminated without
result when, within the time-limit for delivery of the opinion, the chair of
the committee so decides or a simple majority of committee members so request.

3.           Where reference is made to this
paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Where the opinion of the committee is to be
obtained by written procedure, that procedure shall be terminated without
result when, within the time-limit for delivery of the opinion, the chair of
the committee so decides or a simple majority of committee members so request.

Article 40
Evaluation

1.           By 31
December 2018, an evaluation report shall be established by the Commission on
the achievement of the objectives set out in Article 2(1) in relation to the
measures referred to in Chapter I and Chapter II of Title II and in Articles 29
and 30 of Chapter III (results and impacts), as regards the efficiency of the
use of resources and its added value, at Union level. The evaluation shall also
address the scope for simplification, the continued relevance of all
objectives, as well as the contribution of the measures to the Union priorities
of smart, sustainable and inclusive growth. It shall take into account
evaluation results on the long-term impact of the predecessor measures.

2.           By 30 June 2022 the Commission
shall carry out an ex-post evaluation of the measures referred to in paragraph
1 in close cooperation with the Member States. That ex-post evaluation of the
measures mentioned in paragraph 1 shall examine the effectiveness and
efficiency of the expenditure referred to in Article 1 and its impact.

3.           The evaluations referred to in
paragraphs 1 and 2 shall take account of the progress made by using the indicators
referred to in Article 2(2).

4.           The Commission shall communicate
the conclusions of the evaluations referred to in paragraphs 1 and 2 to the
European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions.

Article 41
Information, communication and publicity

1.           Where appropriate,
beneficiaries and Member States concerned shall ensure that suitable publicity
is given to financial contributions granted under this Regulation in order to
inform the public of the role of the Union in the funding of the measures.

2.           The Commission shall
implement information and communication actions on the measures funded and
results. Moreover, budget allocated to communication under this Regulation
shall also cover corporate communication on the political priorities of the Union.

Article 42
Repeals

1.           Decisions 66/399/EEC,
76/894/EEC and 2009/470/EC are repealed.

2.           References to Decisions
66/399/EEC and 76/894/EEC shall be construed as references to Article 58(1) of
Regulation (EC) No 178/2002.

Article 43
Transitional provisions

For national programmes for the eradication
control and monitoring of animal diseases and zoonoses for the year 2013
benefitting from Union financing under the financial measure provided for in
Article 27 of Decision 2009/470/EC, paragraphs 7 and 8 of that Article shall
continue to apply.

Article 44
Amendment of Directive 98/56/EC

Directive 98/56/EC[28] is amended as follows:

In Article 17, paragraph 1 is replaced by
the following:

'1.           The Commission shall be assisted
by the Standing Committee on Plants, Animals, Food and Feed established by
Article 58(1) of Regulation (EC) No 178/2002 of the European Parliament and of
the Council. That Committee shall be a committee within the meaning of
Regulation (EU) No 182/2011.'

In Article 18, paragraph 1 is replaced by
the following:

'1.           The Commission shall be assisted
by the Standing Committee on Plants, Animals, Food and Feed established by
Article 58(1) of Regulation (EC) No 178/2002. That Committee shall be a
committee within the meaning of Regulation (EU) No 182/2011.'

Article 45
Amendment of Directive 2000/29/EC

Directive 2000/29/EC is amended as follows:

(1)          In Article 13c, paragraph 5 is
deleted.

(2)          Articles 22 to 26 are deleted.

Article 46
Amendment of Regulation (EC) No 178/2002

1.           In Article 58 of
Regulation (EC) No 178/2002, paragraph 1 is replaced by the following:

'1.      The Commission shall be assisted by a
Standing Committee on Plants, Animals, Food and Feed, hereinafter referred to
as the ‘Committee’. That Committee shall be a committee within the meaning of
Regulation (EU) No 182/2011 of the European Parliament and of the Council[29]. The Committee shall be
organised in sections to deal with all relevant matters.'

2.           All references in Union
legislation to the Standing Committee on the Food Chain and Animal Health shall
be construed as references to the Committee referred to in Article 58(1) of
Regulation (EC) No 178/2002.

Article 47
Amendment of Regulation (EC) No 882/2004

Article 66 of Regulation (EC) No
882/2004 is deleted.

Article 48
Amendment of Regulation (EC) No 396/2005

Articles 36 and 37 of Regulation (EC) No
396/2005 are deleted.

Article 49
Amendment of Directive 2008/90/EC

In Article 19 of Directive 2008/90/EC, paragraph
1 is replaced by the following:

'1.           The Commission shall be assisted
by the Standing Committee on Plants, Animals, Food and Feed established by
Article 58(1) of Regulation (EC) No 178/2002 of the European Parliament and of
the Council. That Committee shall be a committee within the meaning of
Regulation (EU) No 182/2011 of the European Parliament and of the Council.'

Article 50
Amendment of Directive 2009/128/EC

Article 22 of Directive 2009/128/EC is
deleted.

Article 51
Amendment of Regulation (EC) No 1107/2009

Article 76 of Regulation (EC) No 1107/2009
is deleted.

Article 52
Entry into force and application

This Regulation shall enter into force on the third day following that of its
publication in the Official Journal of the European Union.

It shall apply from 1 January 2014.

This Regulation shall be binding
in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.    Title of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of estimated impact on expenditure

3.2.2. Estimated
impact on operational appropriations

3.2.3. Estimated
impact on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

Proposal for a Regulation of the European Parliament and of the
Council laying down provisions for the management of expenditure in the field
of food chain, animal health and welfare and on plant health and plant
reproductive material ("food and feed expenditure")

1.2.        Policy area(s) concerned
in the ABM/ABB structure[30]

17 04 Food and feed safety, animal health, animal welfare and plant
health

1.3.        Nature of the proposal/initiative

 ̈ The proposal/initiative relates to a new action

 ̈ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[31]

 ̈ The proposal/initiative relates to the extension of
an existing action

P       The proposal/initiative relates to an
action redirected towards a new action

1.4.        Objectives

1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative

Expenditure covered by this Regulation shall aim to ensure a high
level of health for humans, animals and plants along the food chain and in
related areas and a high level of protection of consumers and the environment
while enabling the EU food industry to operate in an environment favouring
competitiveness and creation of jobs.

1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned

Specific objective No 1

Contribute to a high level of safety of food and food production
systems and of other products which may affect safety of food while improving
the sustainability of food production

Specific objective No 2

Contribute to a higher animal health status in the Union and to
support the improvement of the welfare of animals

Specific objective No 3

Contribute to timely detection of pests and their eradication where
those pests have entered into the Union

Specific objective No 4

Contribute to improve the effectiveness, efficiency and reliability
of official controls and other activities carried out in view of the effective
implementation of and compliance with the Union rules referred to in the
Regulation laying down provisions for the management of food and feed
expenditure

1.4.3.     Expected result(s) and
impact

The 2007-2013 financial framework primarily affects Member States and their competent authorities as they are the main beneficiaries of the financial
contribution. There are also indirect impacts on stakeholders such as primary
producers (farmers, etc.), other operators and veterinarians but these are
secondary. This will be continued with the draft Regulation covering the period
2014-2020.

The overall expected result is that, through the co-financing by the
EU:

- animal diseases and plant pests will be faster eradicated in case
of outbreaks

- the appearance of animal diseases and plant pests will be avoided

- EU legislation related to food and feed safety will be applied in
more harmonised way all over the EU.

Furthermore, the above will also contribute to a smoother
functioning of the internal market and more fluent access to the markets of
third countries which may have a positive impact on employment in the EU.

Indicators of results and impact

Objective 1: Contribute to a high level of safety of food and food
production systems and of other products which may affect the safety of food
while improving the sustainability of food production

This objective will be measured through the reduction in the number
of cases of diseases in humans in the Union and which are linked to food safety
or zoonoses.

Objective 2: Contribute to a higher animal health status in the Union and to support the improvement of the welfare of animals

This objective will be measured through the increase of the number
of Member States or regions thereof free from animal diseases for which a
financial contribution is granted and by a reduction of disease parameters,
such as incidence, prevalence and number of outbreaks.

Objective 3: Contribute to timely detection of pests and their
eradication where these have entered into the Union

This objective will be measured through:

- the coverage of the Union territory by surveys for pests, in
particular for pests not known to occur in the Union territory and pests
considered to be most dangerous for the Union territory; and

- the time and success rate for the eradication of those pests.

Objective 4: Contribute to improve the effectiveness, efficiency and
reliability of official controls and other activities carried out in view of
the effective implementation of and compliance with the Union rules referred to
in Article 1 of the draft Regulation

This objective will be measured through a favourable trend of the
outcome of controls in particular areas of concern carried out and reported by
Commission experts in the Member States.

1.5.        Grounds for the
proposal/initiative

1.5.1.     Requirement(s) to be met in
the short or long term

The private sector is to be protected from seriously harmful impacts
of diseases and pests and hence will contribute fostering growth and job
creation in the EU. The provisions of this regulation should support the policy
goals for each area, which aim to uphold good animal health, plant health,
plant reproductive material health and official controls.

The Regulation will continue to support the implementation of EU
action in the field of food safety policy from 2014 onwards. It builds on the results
achieved through the existing legislation and on the accelerated impact
assessment accompanying this proposal.

1.5.2.     Added value of EU
involvement

In accordance with the “field-to-table” approach to food and feed
safety, this action aims at bringing improvements all along the food chain.
This sector is harmonised at EU level and considerable trade takes place
between Member States. The EU food and drink industry is the largest
manufacturing sector in Europe with an annual turnover in 2009 of 954 billion
Euros; it exports some 54 billion Euros of food and drink products to third
countries, contributes to a positive trade balance of around 10 billion Euros
and employs around 4.2 million people. (Source: Confederation of the food and
drink industries of the EU).

Outbreaks of serious animal and plant diseases may cause major
direct losses to agriculture and potentially enormous indirect losses to the
European economy. Such problems can rapidly spread between Member States and
involve the entire EU market. The recent occurrence of Bluetongue in much of Europe, which caused substantial losses, is an important reminder of the unpredictability
and severity of animal disease outbreaks.

The objective of the EU intervention is to minimise the impact on
human and animal health and markets and to reduce risks all along the food
chain through preventive actions and the management of crises.

An EU contribution is made towards national programmes aimed at
improving animal health or eradicating those diseases that affect people or
whose presence can cause major social, economic and political impacts.
Eradication, surveillance and monitoring programmes are necessary to reduce
this risk for public and/or animal health to an acceptable level. EU wide
surveillance is also carried out for diseases such as avian influenza and
transmissible spongiform encephalopathies (TSE).

Financial contribution for emergency measures (emergency fund) is
available to assist Member States in dealing with animal disease crises and
vaccine banks have been established and are kept stocked to maintain a supply
of vaccines for emergency use.

Funds are also provided to support any Member State which is the
victim of an emergence of organisms harmful to plants, especially in the face
of increased trade between Member States and with other countries. This affects
not just the food industry but also industry in general because of the possible
impact of some plant harmful organisms on wood and wood packaging material e.g.
pallets.

In addition a network of European Union Reference Laboratories is
funded to ensure better preparedness and to provide scientific support at EU
level to the Commission and the Member States. This contributes to the
harmonisation of the diagnostic practices at EU level. The action also
comprises a training programme (BTSF – Better Training for Safer Food
programme) for staff of competent authorities, both within and outside the EU
to ensure the proper implementation of EU standards.

1.5.3.     Lessons learned from
similar experiences in the past

The problems of the current legal framework primarily concern the
need to amend that framework to the changed sectorial needs identified in the
respective reviews. Those needs should be reflected in the future legislation,
irrespective of whether the provisions concerning expenditures are positioned
in the sectorial acts or brought together in a single horizontal act.
Driver 1: The current legal framework is too complex

The current lack of clarity in funding rates presents Member States
with a great deal of uncertainty when planning. Therefore, this regulation
foresees three maximum rates: 50, 75 and 100%. The 100% funding rate is applied
for the purchase of vaccines and the eligible costs of the EU reference
laboratories; the 75 % rate would apply to eligible expenses for Member States
whose most recent gross national income per inhabitant is less than 90% of the
Union average; the 50% rate applies to the other eligible expenses; it is
considered as the basic rate from 2014 onwards.

In addition, the provisions regarding the various financial
provisions are currently found in a number of different legislative
instruments. This issue will be solved by grouping these provisions in one
single legal base. The proposed minimum level of 50 000 euro per grant will
definitely simplify the budgetary management for the administrations in the Member States and the European institutions.       
Driver 2: The existing financial management tools are not complete

The existing financial provisions do not set clear and consistent
objectives and indicators.

The definition of eligible measures and associated costs is unclear.
A 2012 internal audit report recommended that they be clarified and simplified.

All of these factors contribute to a situation where the system is
over-complex and error rates are too high. A recent survey of MSs
representatives found that the multiannual and annual programme planning
framework is regarded as burdensome. The annual cycle of plan preparation,
appraisal, approval, adoption and reporting is resource-intensive and involves
a high degree of year-on-year repetition.

1.5.4.     Coherence and possible
synergy with other relevant instruments

It is crucially important that the proposal currently under
consideration also remains consistent with other EU policies. At a high level,
this means supporting the objectives of EU 2020 and the multiannual financial
framework. Perhaps most importantly, it is crucial that the financial framework
supports the economic recovery through promotion of trade and other important
economic activity. In other areas, it will be important to ensure that feed and
food safety policy supports and complements, and does not overlap or undermine,
other EU policies. This is particularly true in the areas of agriculture and trade.
The new proposals for the common agricultural policy support the same sorts of
general objectives as the current draft regulation in question, but different
specific objectives and via different means. It is also crucial that the draft
continues to support European trade and is consistent with existing and future
trade rules. There is some consideration needed of marine policy, when the
financial framework supports the prevention or eradication of diseases
affecting aquaculture animals, for example. And it is important to be mindful
of the objectives of environmental policies lastly, there are strong links
between other policies such as public health, animal welfare, and others, which
must be co-ordinated with.

1.6.        Duration and financial
impact

þ Proposal/initiative of limited
duration

–
þ  Proposal/initiative in effect from 01/01/2014 to 31/12/2020

–
þ  Financial impact from 2014 to 2020 (commitment appropriations)

 ̈ Proposal/initiative of unlimited
duration

–
Implementation with a start-up period from YYYY
to YYYY,

–
Followed by full-scale operation.

1.7.        Management mode(s)
envisaged[32]

þ Centralised direct management by the Commission

þCentralised indirect management with the
delegation of implementation tasks to:

–
þ  executive agencies

–
 ̈  bodies set up by the Communities[33]

–
 ̈  national public-sector bodies/bodies with public-service mission

–
 ̈  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

 ̈ Shared management with the Member States

 ̈ Decentralised management with third countries

 ̈ Joint management with international organisations

If more than one
management mode is indicated, please provide details in the
"Comments" section.

Comments

Executive
agency EAHC: In accordance with Council Regulation (EC) No 58/2003 of 19
December 2002 laying down the statute for Executive Agencies to be entrusted
with certain tasks in the management of Community programmes[34], the Commission has entrusted[35] the Executive Agency for
Health and Consumers with implementation tasks for the management of the Better
Training for Safer Food (BTSF) policy for 2007-2013. The Commission may
therefore decide to entrust the Executive Agency for Health and Consumers also
with implementation tasks for the management of the BTSF programme 2014-2020.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

Currently, the EAHC manages expenditure for the Better Training for
Safer Food programme. All remaining expenditure is directly managed by the
Commission. More attention will be paid to the analysis of the presented veterinary
and phytosanitary programmes; the 2013 veterinary programmes were for the first
time submitted to an external evaluation; it will be further developed in
coming years. Performance indicators are currently under development; they will
be useful for the evaluation of the programme's achievements.

By the end of 2018, an evaluation report shall be established by the
Commission on the achievement of the objectives of the measures (at the level
of results and impacts), the efficiency of the use of resources and its
European added value, in view of a decision on the renewal, modification or
suspension of the measures. The evaluation shall additionally address the scope
for simplification, the continued relevance of all objectives, as well as the
contribution of the measures to the Union priorities of smart, sustainable and
inclusive growth. It shall take into account evaluation results on the
long-term impact of the predecessor measures.

Furthermore, no later than mid-2022, an ex-post evaluation will be
carried out.

The Commission shall communicate the results of those evaluations,
accompanied by its comments, to the European Parliament, the Council, the
European Economic and Social Committee and the Committee of the Regions.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

The majority of the funds is directed to the Member States.

The main elements of the implementation of the budget are the
following:

By means of implementing acts, common or separate annual work
programmes will be adopted for the implementation of the financial contribution
to official controls and other activities. The above annual work programmes
shall set out the objectives pursued, the expected results, the method of
implementation and their total amount. They shall also contain a description of
the measures to be financed, an indication of the amount allocated to each
measure and an indicative implementation timetable. They shall include for
grants the priorities, the essential evaluation criteria and the funding rate.

For the implementation of the eradication, survey and monitoring
programmes in the animal and plant health area the Commission will by
30 January each year and, following evaluation of the programmes
submitted, approve the programmes subject to any condition where appropriate
and decide on the amount of the grant. In the case of approval of multiannual
programmes, budgetary commitments may be divided into annual instalments. If
so, each year the Commission shall commit the annual instalments taking into
account the progress of the programmes, the estimated needs and the budget
available.

For the implementation of emergency measures in the in the animal
and plant health area or where it is necessary to respond to unforeseeable
developments, the Commission shall adopt ad hoc financing decisions.

On top of that a number of service contracts will be attributed.

The main risks are the following:

- as regards official controls, risk of poor implementation reducing
the effectiveness of the measures co-financed;

- inefficient or non-economic use of funds for the eradication
programmes and the emergency measures due to complexity of reimbursing actual
eligible costs coupled with limited possibilities to check eligible costs from
the desk.

2.2.2.     Control methods envisaged

In general, all financial transactions (commitments, payments,
recovery orders, etc.) and contracts/grant agreements related to the food and
feed expenditure policy are checked, authorised and signed by the sub-delegated
authorising officers in charge of the activity. Each sub-delegated authorising
officer is assisted by a decentralised financial cell which verifies and
completes the files of the financial transactions and contracts/grant
agreements before they are signed. Operational initiation and verification is
carried out by members of staff of the responsible Unit.

In addition, the central financial cell performs a second level
ex-ante desk verification, based on a sample of transactions. Furthermore, the
DG ́s centralised on-the-spot control team verifies on the site the eligibility
of the costs claimed at beneficiary's level. DG SANCO is also making use of a specialised
company in the organisation of ex post controls.

Grants: Having regard to the above mentioned framework on the one
hand and to the fact that the bulk of the beneficiaries of the EU grants are
public identities, the risk of irregularities can be considered as very
limited. Finalised granted projects will be subject to ex post controls. The
strategy of ex-post audit will be: (a) to combine the risk assessment and ad
random selection in order to avoid a too rigid selection process, and (b) to
pay attention to operational aspects whenever possible during the on-the-spot
audit.

Service contracts: DG SANCO concludes service contracts directly
with service providers. The contractors are selected on the basis of call for
tender procedures, in full respect of the Financial Regulation. Contracts above
a certain ceiling are subject to in depth control by a DG SANCO public
procurement committee. DG SANCO uses the standard contracts proposed by the
Commission which provides for the possibility to run ex post controls. However,
as the amounts of the contracts are fixed, the risks of financial errors are
reduced and the number of ex post controls on service contracts very limited.

2.3.        Measures to prevent fraud
and irregularities

The Commission shall take appropriate measures ensuring that, when
actions financed under this Regulation are implemented, the financial interests
of the European Union are protected by the application of preventive measures
against fraud, corruption and any other illegal activities, by effective checks
and, if irregularities are detected, by the recovery of the amounts wrongly
paid and, where appropriate, by effective, proportional and deterrent
penalties, in accordance with Article 325 of the Treaty on the Functioning of
the European Union, Council Regulation (EC, Euratom) No 2988/95 of 18
December 1995 on the protection of the European Communities’ financial
interests and Article 58 of the Financial Regulation.

The Commission or its representatives and the Court of Auditors
shall have the power of audit, on the basis of documents and on-the-spot, over
all grant beneficiaries, contractors and subcontractors who have received Union
funds. OLAF shall be authorised to carry out on-the-spot checks and inspections
on economic operators concerned directly or indirectly by such funding in
accordance with the procedures laid down in Council Regulation (Euratom, EC) No
2185/96 of 11 November 1996 with a view to establishing that there has been
fraud, corruption or any other illegal activity in connection with a grant
agreement or decision or a contract concerning Union funding.

Without prejudice to the previous sub-paragraphs, decisions,
agreements and contracts resulting from the implementation of the Regulation shall
expressly entitle the Commission, including OLAF, and the Court of Auditors to
conduct such audits, on-the-spot checks and inspections.

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· Existing expenditure budget lines (renumbered for new nomenclature
for 2014-2020)

· New budget lines requested (new nomenclature 2014-2020).

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

|| Diff./non-diff || from EFTA[36] countries || from candidate countries[37] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

3 || 17 01 04 03 Administrative expenditure in support of the plant health measures, feed and food safety, animal disease eradication and emergency fund || Diff./non-diff. || YES / NO || YES /NO || YES / NO || YES /NO

3 || 17 01 06 03 Administrative expenditure in support of the Executive Agency for Health and Consumers || Diff./non-diff. || YES / NO || YES /NO || YES / NO || YES /NO

3 || 17 04 01 Financial contribution ensuring a higher animal health status and high level of protection of animals in the Union || Diff./non-diff. || YES / NO || YES /NO || YES / NO || YES /NO

3 || 17 04 02 Financial contribution ensuring timely detection of harmful organisms for plants and their eradication || Diff./non-diff. || YES / NO || YES /NO || YES / NO || YES /NO

3 || 17 04 03 Financial contribution ensuring effective, efficient and reliable controls || Diff./non-diff. || YES / NO || YES /NO || YES / NO || YES /NO

3 || 17 04 04 Emergency measures related to animal and plant health || Diff./non-diff. || YES / NO || YES /NO || YES /NO || YES /NO

4 || 17 04 10 International agreements || Diff./non-diff. || YES / NO || YES /NO || YES / NO || YES /NO

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

(in current prices)

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || 3 || Security and citizenship

DG: SANCO || || Year || Year || Year || Year || Year || Year || Year || Year || TOTAL

2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || >2020

Operational appropriations || || || || || || || || ||

17 04 01 Contributing to a higher animal health status and high level of protection of animals in the Union || Commitments || (1) || 180,000 || 178,500 || 177,000 || 175,000 || 171,500 || 171,500 || 171,000 || || 1,224,500

Payments || (2) || 10,000 || 165,000 || 163,000 || 161,000 || 157,000 || 158,000 || 159,000 || 251,500 || 1,224,500

17 04 02 Contributing to timely detection of harmful organisms for plants and their eradication || Commitments || (1) || 5,000 || 10,000 || 14,000 || 19,000 || 25,000 || 28,500 || 30,500 || || 132,000

Payments || (2) || 3,000 || 9,000 || 12,000 || 17,000 || 22,000 || 25,000 || 26,000 || 18,000 || 132,000

17 04 03 Contributing to improve the effectiveness, efficiency and reliability of controls || Commitments || (1) || 45,724 || 47,360 || 50,401 || 53,558 || 57,520 || 60,021 || 62,162 || || 376,746

Payments || (2) || 18,000 || 45,000 || 48,000 || 50,000 || 52,000 || 55,000 || 58,000 || 50,746 || 376,746

17 04 04 Emergency measures related to animal and plant health || Commitments || (1) || 20,000 || 20,000 || 20,000 || 20,000 || 20,000 || 20,000 || 20,000 || || 140,000

|| Payments || (2) || 10,000 || 20,000 || 20,000 || 20,000 || 20,000 || 20,000 || 20,000 || 10,000 || 140,000

Appropriations of an administrative nature financed from the envelope for specific programmes (former "BA" lines, indirect and direct research) || || || || || || || || ||

17 01 04 03 Support expenditure in the field of food and feed safety, animal health, animal welfare and plant health || (3) || 2,670 || 2,670 || 2,670 || 2,670 || 2,670 || 2,670 || 2,670 || || 18,690

17 01 06 03 Executive Agency for Health and Consumers – Contribution in the field of food and feed safety, animal health, animal welfare and plant health

TOTAL appropriations || Commitments || =1+3 || 253,394 || 258,530 || 264,071 || 270,228 || 276,690 || 282,691 || 286,332 || || 1,891,936

for DG SANCO || Payments || =2+3 || 43,670 || 241,670 || 245,670 || 250,670 || 253,670 || 260,670 || 265,670 || 330,246 || 1,891,936

TOTAL operational appropriations || Commitments || (4) || 250,724 || 255,860 || 261,401 || 267,558 || 274,020 || 280,021 || 283,662 || || 1,873,246

Payments || (5) || 41,000 || 239,000 || 243,000 || 248,000 || 251,000 || 258,000 || 263,000 || 330,426 || 1,873,246

TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 2,670 || 2,670 || 2,670 || 2,670 || 2,670 || 2,670 || 2,670 || || 18,690

TOTAL appropriations || Commitments || =4+6 || 253,394 || 258,530 || 264,071 || 270,228 || 276,690 || 282,691 || 286,332 || || 1,891,936

under HEADING 3

of the multiannual financial framework || Payments || =5+6 || 43,670 || 241,670 || 245,670 || 250,670 || 253,670 || 260,670 || 265,670 || 330,246 || 1,891,936

An
amount of EUR 5 million linked to climate change is earmarked in the 2014 draft
budget, in particular for the eradication of bluetongue and Schmallenberg
disease

Heading of multiannual financial framework: || 5 || Administrative expenditure

EUR million (to 3 decimal places)

|| || || Year || Year || Year || Year || Year || Year || Year || TOTAL

2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020

DG: SANCO || ||

Human Resources || 3,349 || 3,349 || 3,349 || 3,349 || 3,349 || 3,349 || 3,349 || 23,446

Other administrative expenditure || 6,121 || 6,243 || 6,368 || 6,495 || 6,625 || 6,758 || 6,893 || 45,503

TOTAL || Appropriations || 9,470 || 9,593 || 9,717 || 9,845 || 9,975 || 10,107 || 10,242 || 68,949

|| || || || || || || || || ||

TOTAL appropriations || (Total commitments = total payments) || 9,470 || 9,593 || 9,717 || 9,845 || 9,975 || 10,107 || 10,242 || 68,949

under HEADING 5

of the multiannual financial framework

EUR million (to 3 decimal places)

|| || || Year || Year || Year || Year || Year || Year || Year || Year >2020 || TOTAL

2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020

TOTAL appropriations || Commitments || 262,865 || 268,123 || 273,789 || 280,073 || 286,665 || 292,799 || 296,575 || || 1,960,886

under HEADINGS 1 to 5

of the multiannual financial framework || Payments || 53,141 || 251,263 || 255,388 || 260,515 || 263,645 || 270,778 || 275,913 || 330,246 || 1,960,886

It should be recalled that the amounts
mentioned under point 3.2.1 are maximum amounts and the annual needs will be
assessed every year within the overall maximum amount.

3.2.2.     Estimated impact on
operational appropriations

–
 ̈  The proposal/initiative does not require the use of operational
appropriations

– þ  The
proposal/initiative requires the use of operational appropriations, as
explained below (Commitment appropriations in EUR million (to 3 decimal places)

SPECIFIC OBJECTIVE No 1 –
Contribute to a high level of safety of food and food
production systems and of other products which may affect safety of food while
improving the sustainability of food production

Expenses related to the realisation of this
objective are integrated in those linked to measures taken under the objective
number 2 to 4.

SPECIFIC OBJECTIVE No 2 –
Contribute to a higher animal health status in the Union and to support the improvement of the welfare of animals

Objectives and outputs || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL ||

OUTPUTS ||

||

Type of output || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost ||

- Output || Programmes for the eradication, control and surveillance of diseases and zoonoses || +/- 1,4 million || +/-120 || 170 || +/-120 || 168 || +/-120 || 166 || +/-120 || 163 || +/-120 || 159 || +/-120 || 158 || +/-120 || 157 || +/- 840 || 1,141 ||

- Output || Other veterinary measures and purchase of vaccines/antigens || +/- 2,38 million || +/- 5 || 10 || +/- 5 || 10,5 || +/- 5 || 11 || +/- 5 || 12 || +/- 5 || 12,5 || +/- 5 || 13,5 || +/- 5 || 14 || +/- 35 || 83,5 ||

Sub-total for specific objective No 2 || || 180,0 || || 178,5 || || 177,0 || || 175,0 || || 171,5 || || 171,5 || || 171 || || 1,224,5 ||

SPECIFIC OBJECTIVE No 3 – Contribute to timely detection of pests and their eradication
where those pests have entered into the Union

Objectives and outputs || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL

OUTPUTS

Type of output || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

- Output || Surveillance programmes || +/-0,9 || 5 || 5,0 || 13 || 9,0 || 16 || 13,0 || 20 || 18,0 || 24 || 24,0 || 27 || 27,0 || 31 || 29,0 || 136 || 125,0

-Output || Seeds || 0,600 || - || - || 2 || 1,0 || 2 || 1,0 || 2 || 1,0 || 2 || 1,0 || 2 || 1,5 || 2 || 1,5 || 12 || 7,0

Sub-total for specific objective No 3 || || 5,0 || || 10,0 || || 14,0 || || 19,0 || || 25,0 || || 28,5 || || 30,5 || || 132,0

SPECIFIC OBJECTIVE No 4 – Contribute to improve the effectiveness, efficiency and
reliability of controls

Objectives and outputs || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL

OUTPUTS

Type of output || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

- Output || Laboratories and centres || 0,330 || 45 || 15 || 45 || 15,5 || 47 || 16 || 48 || 16,5 || 51 || 17 || 55 || 18 || 56 || 18,8 || 345 || 116,8

Output || BTSF || 0,150 || 95 || 15 || 100 || 15,5 || 105 || 16 || 105 || 16,5 || 116 || 17,5 || 122 || 18 || 127 || 19 || 770 || 117,5

- Output || Communication || 0,25 || 8 || 2,0 || 8 || 2,0 || 8 || 2,0 || 10 || 2,5 || 10 || 2,5 || 10 || 2,70 || 10 || 2,70 || 64 || 16,4

- Output || National experts || 0,005 || 125 || 0,5 || 125 || 0,5 || 125 || 0,6 || 125 || 0,6 || 125 || 0,7 || 125 || 0,7 || 125 || 0,7 || 875 || 4,3

- Output || Alert systems and IT tools || 1,300 || 6 || 8 || 7 || 8 || 7 || 8,5 || 7 || 9 || 7 || 9,5 || 7 || 10 || 8 || 10 || 49 || 63,0

- Output || Data collection || 0,500 || 4 || 2 || 5 || 2,5 || 6 || 3 || 7 || 3,5 || 9 || 4,5 || 9 || 4,5 || 9 || 4,5 || 49 || 24,5

- Output || International organisations || 0,370 || 3 || 1,0 || 3 || 1,0 || 4 || 1,5 || 4 || 1,5 || 4 || 1,5 || 4 || 1,8 || 6 || 2,0 || 28 || 10,3

- Output || Studies and evaluations || 0,300 || 7 || 2,224 || 7 || 2,360 || 9 || 2,901 || 10 || 3,358 || 12 || 4,320 || 12 || 4,321 || 13 || 4,462 || 70 || 23,946

Sub-total for specific objective No 4 || || 45,724 || || 47,360 || || 50,401 || || 53,558 || || 57,520 || || 60,021 || || 62,162 || || 376,746

SPECIFIC OBJECTIVES No 2
and 3 - Emergency measures related to animal and plant
health

Objectives and outputs || || || Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL

OUTPUTS

Type of output || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

Output || Emergencies animal health and plant health || || * || 20,0 || * || 20,0 || * || 20,0 || * || 20,0 || * || 20,0 || * || 20,0 || * || 20,0 || * || 140,0

|| || || || || || || || || || || || || || || || || ||

Sub-total for specific objective No 2 and 3 || || 20 || || 20 || || 20 || || 20 || || 20 || || 20 || || 20 || || 140

- number of outputs unknown: depends on the
number of outbreaks

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL

TOTAL COST || || 250,724 || || 255,860 || || 261,401 || || 267,558 || || 274,020 || || 280,021 || || 283,662 || || 1,873,246

It should be recalled that the amounts
mentioned under point 3.2.2 are maximum amounts and the annual needs will be
assessed every year within the overall maximum amount.

3.2.3.     Estimated impact on
appropriations of an administrative nature

3.2.3.1.  Summary

–
 ̈  The proposal/initiative does not require the use of administrative
appropriations

–
þ  The proposal/initiative requires the use of administrative
appropriations, as explained below:

EUR million (to 3
decimal places)

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || TOTAL

HEADING 5 of the multiannual financial framework || || || || || || || ||

Human resources || 3,349 || 3,349 || 3,349 || 3,349 || 3,349 || 3,349 || 3,349 || 23,446

Other administrative expenditure || 6,121 || 6,243 || 6,368 || 6,495 || 6,625 || 6,758 || 6,893 || 45,503

Subtotal HEADING 5 of the multiannual financial framework || 9,470 || 9,593 || 9,717 || 9,845 || 9,975 || 10,107 || 10,242 || 68,949

Outside HEADING 5[38] of the multiannual financial framework ||

Human resources || xx || xx || xx || xx || xx || xx || xx || xx

Other expenditure of an administrative nature || xx || xx || xx || xx || xx || xx || xx || xx

Subtotal outside HEADING 5 of the multiannual financial framework || 2,670 || 2,670 || 2,670 || 2,670 || 2,670 || 2,670 || 2,670 || 18,690

TOTAL || 12,141 || 12,263 || 12,388 || 12,515 || 12,645 || 12,778 || 12,913 || 87,640

The
above figures will be adjusted in accordance with the results of the envisaged
externalisation process.

3.2.3.2.  Estimated requirements of
human resources

–
 ̈  The proposal/initiative does not require the use of human
resources

–
þ  The proposal/initiative requires the use of human resources, as
explained below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020

 Establishment plan posts (officials and temporary agents) ||

XX 01 01 01 (Headquarters and Commission’s Representation Offices) || 24,5 || 24,5 || 24,5 || 24,5 || 24,5 || 24,5 || 24,5

XX 01 01 02 (Delegations) || || || || || || ||

XX 01 05 01 (Indirect research) || || || || || || ||

10 01 05 01 (Direct research) || || || || || || ||

 External personnel (in Full Time Equivalent unit: FTE)[39] ||

XX 01 02 01 (CA, INT, SNE from the "global envelope") || 2 || 2 || 2 || 2 || 2 || 2 || 2

XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || || || ||

XX 01 04 yy [40] || - at Headquarters[41] || || || || || || ||

- in delegations || || || || || || ||

XX 01 05 02 (CA, INT, SNE - Indirect research) || || || || || || ||

10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || ||

Other budget lines (specify) || || || || || || ||

TOTAL || 26,5 || 26,5 || 26,5 || 26,5 || 26,5 || 26,5 || 26,5

XX is the policy
area or budget title concerned.

Currently the
management of expenditure in the field of food chain, animal health and
welfare, and on plant health and plant reproductive material (food and feed
expenditure) covered by proposal SANCO/11220/2012 Rev.1 is executed by 28,5
FTE's. Nevertheless it is expected that from 2014 onwards 26,5 FTE will
suffice. This number includes only staff of DG SANCO.

These figures only
relate to the staff for the management of the 'food and feed' expenditure and,
therefore, staff working for the operational implementation of the sectoral
policies is not included. However, the revision of the legislative framework
for the sectoral policies (animal health, pests, plant reproductive materials
and controls) that are also proposed at the same time as this financial
framework regulation has no additional impact on financial and human resources
above that what is indicated in this common Legislative Financial Statement.

The human
resources required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of the budgetary constraints.

Description of
tasks to be carried out:

Officials and temporary agents || · Co-ordinate, draft and organise the adoption procedure for the annual work programmes (financing decisions), including consultation of a Member States committee · Follow up / monitor programming and implementation of financial activities according to the budgetary and financial rules in force; contribute to activity reports · Prepare and maintain information tools; provide information for internal and external audits · Establish and verify payments, commitments, and procurement/grant files; ensure they comply with the contract terms, and financial rules/regulations · Assure proper accounting of the financial transactions · Monitor deadlines of payments in accordance with the financial regulation and rules, as well as work-flows of individual financial files · Prepare and provide training to external organisations regarding applications to calls for proposals · Communicate relevant information to the contractors and beneficiaries throughout the project time · Launch, manage and monitor calls for proposals / tenders, evaluation and selection of projects · Follow up the implementation of projects and the performance of project managers and partners, monitor contractual obligations · Monitor deadlines of payments in accordance with the financial regulation and rules as well as work-flows of individual financial files · Verify the respect of the Financial Regulation, Implementing rules, internal rules on budget execution, Basic Act, Financing decision and other related rules and budgetary dispositions in the financial transactions · Verify the grant agreement / contract with the selected beneficiary / contractor, and its justification · Verify that the methodology, including eligibility, selection criteria and award criteria were correctly applied in the selection process and that the selection process was carried out in accordance with the rules · Check correctness of commitment processes

External personnel || · Prepare and maintain information tools; provide information for internal and external audits · Establish and verify payments, commitments, and procurement/grant files; ensure they comply with the contract terms, and financial rules/regulations · Assure proper accounting of the financial transactions · Monitor deadlines of payments in accordance with the financial regulation and rules, as well as work-flows of individual financial files · Prepare and provide training to external organisations regarding applications to calls for proposals · Communicate relevant information to the contractors and beneficiaries throughout the project time · Launch, manage and monitor calls for proposals / tenders, evaluation and selection of projects · Follow up the implementation of projects and the performance of project managers and partners, monitor contractual obligations · Monitor deadlines of payments in accordance with the financial regulation and rules as well as work-flows of individual financial files. · Verify the respect of the Financial Regulation, Implementing rules, internal rules on budget execution, Basic Act, Financing decision and other related rules and budgetary dispositions in the financial transactions · Verify the grant agreement / contract with the selected beneficiary / contractor, and its justification · Verify that the methodology, including eligibility, selection criteria and award criteria were correctly applied in the selection process and that the selection process was carried out in accordance with the rules · Check correctness of commitment processes

3.2.4.     Compatibility with the
current multiannual financial framework

–
þ  Proposal/initiative is compatible with the 2014-2020 multiannual
financial framework as proposed by the Commission.

–
 ̈  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

NOT APPLICABLE

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[42].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

NOT APPLICABLE

3.2.5.     Third-party contributions

–
þ The proposal/initiative does not provide for co-financing by third
parties

–
 ̈  The proposal/initiative provides for the co-financing estimated
below:

Appropriations in EUR million (to 3 decimal places)

|| Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020 || Total

Specify the co-financing body || || || || || || || ||

TOTAL appropriations cofinanced || || || || || || || ||

3.3.        Estimated impact on
revenue

–
þ  Proposal/initiative has no financial impact on revenue.

–
 ̈  Proposal/initiative has the following financial impact:

 ̈         on own resources

 ̈         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget year || Impact of the proposal/initiative[43]

Year 2014 || Year 2015 || Year 2016 || Year 2017 || Year 2018 || Year 2019 || Year 2020

Article ............. || || || || || || || ||

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

NOT APPLICABLE

Specify the method for
calculating the impact on revenue.

NOT APPLICABLE

[1]               COM(2011)398
final.

[2]               COM(2012)388
final.

[3]               COM(2011)398
final.

[4]               COM(2012)388
final.

[5]               OJ
C , , p. .

[6]               OJ
C , , p. .

[7]               OJ
C , , p. .

[8]               COM(2011)398
final.

[9]               COM(2012)388
final.

[10]             OJ
C , , p. .

[11]             COM(2010)543
final.

[12]             OJ
L 169, 10.7.2000., p. 1.

[13]             OJ
L 78, 20.3.2013, p. 23.

[14]             OJ
L 298, 26.10.2012, p. 1.

[15]             OJ
L 378, 31.12.1982, p. 58.

[16]             OJ
L 55, 28.2.2011, p. 13.

[17]             OJ
L 155, 18.6.2009, p. 30.

[18]             OJ
125, 11.7.1966, p. 2289/66.

[19]             OJ
L 340, 9.12.1976, p. 25.

[20]             OJ
L 226, 13.8.1998, p. 16.

[21]             OJ
L 267, 8.10.2008, p. 8.

[22]             OJ
L 31, 1.2.2002, p. 1.

[23]             OJ
L 165, 30.4.2004, p. 1.

[24]             OJ
L 70, 16.3.2005, p. 1.

[25]             OJ
L 309, 24.11.2009, p. 71.

[26]             OJ
L 309, 24.11.2009, p. 1.

[27]             OJ
L 292, 15.11.1996, p. 2.

[28]             OJ
L 31, 1.2.2002, p. 1.

[29]             OJ
L 55, 28.2.2011, p. 13.

[30]             ABM:
Activity-Based Management – ABB: Activity-Based
Budgeting.

[31]             As
referred to in Article 49(6)(a) or (b) of the Financial Regulation.

[32]             Details
of management modes and references to the Financial Regulation may be found on
the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[33]             As
referred to in Article 185 of the Financial Regulation.

[34]             OJ
L 11, 16.1.2003, p. 1.

[35]             Commission
Decision C(2008)4943 of 9 September 2008.

[36]             EFTA:
European Free Trade Association.

[37]             Candidate
countries and, where applicable, potential candidate countries from the Western
Balkans.

[38]             Technical
and/or administrative assistance and expenditure in support of the
implementation of EU programmes and/or actions (former "BA" lines),
indirect research, direct research.

[39]             CA=
Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune
Expert en Délégation" (Young Experts in Delegations); LA= Local Agent;
SNE= Seconded National Expert.

[40]             Under
the ceiling for external personnel from operational appropriations (former
"BA" lines).

[41]             Essentially
for Structural Funds, European Agricultural Fund for Rural Development (EAFRD)
and European Fisheries Fund (EFF).

[42]             See
points 19 and 24 of the Interinstitutional Agreement.

[43]             As
regards traditional own resources (customs duties, sugar levies), the amounts
indicated must be net amounts, i.e. gross amounts after deduction of 25% for
collection costs.